The Negative Externalities of MEV Spikes

2min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

In the next part, we're going to talk a little bit about smoothing and redistribution. Justin: I was trying to fix some of the negative externalities of what I called MEV spikes. What is an MEV spike? It's basically when you get randomly chosen as a proposer and you receive some unknown amount of MEV. We call it spiky because there's these big spikes and the small spikes.

Ethereum is getting yet another economic upgrade! The scarcity engine is getting a massive level up with the advent of the MEV Burn.

With Justin Drake and Domothy, they walk us through the research and reasoning behind this next upgrade

Just when we thought we couldn’t get any more bullish…

------ 🚀 DEBRIEF 🚀 https://bankless.cc/YouTubeInfo

------ BANKLESS SPONSOR TOOLS:

📣 SAFE (Gnosis) | ACCOUNT ABSTRACTION https://bankless.cc/AA

⚖️ ARBITRUM | SCALING ETHEREUM https://bankless.cc/Arbitrum

🐙KRAKEN | MOST-TRUSTED CRYPTO EXCHANGE https://bankless.cc/kraken

🧠 AMBIRE | SMART CONTRACT WALLET https://bankless.cc/Ambire

👻 PHANTOM | FRIENDLY MULTICHAIN WALLET https://bankless.cc/phantom-waitlist

🦊METAMASK LEARN | HELPFUL WEB3 RESOURCE https://bankless.cc/MetaMask

------ Topics Covered

0:00 Intro 7:00 What is MEV? 13:30 MEV is Subjective 17:15 The Oil Analogy 21:15 The Benefits of Smoothing 28:35 Builders and Proposers 38:45 Forced Centralization 44:35 Rug Pool Protection 48:30 Distribution 58:20 Pros of Burning 1:05:15 Burning on Overdrive 1:09:30 Does this Hurt Stakers? 1:13:55 Too Deflationary? 1:23:30 Monetary Premium 1:28:15 EIP-4844 1:31:00 The Engine 1:35:50 Wen?

——— Resources:

Justin Drake: https://twitter.com/drakefjustin?s=20

Dom: https://twitter.com/domothy?s=20

Hildobby's Dune Board: https://dune.com/hildobby/eth2-staking

Ultrasound.Money: https://ultrasound.money/

------ Related Episodes:

EIP-1559: https://www.bankless.com/-eip-1559-hasu https://www.bankless.com/-eip-1559-expert-panel-tim-beiko

MEV: https://www.bankless.com/-cryptos-existential-threat-mev-panel https://www.bankless.com/125-matt-cutler

Ultra Sound Money: https://www.bankless.com/-sotn-44-modeling-ultra-sound-money https://www.bankless.com/-ultra-sound-money-justin-drake https://www.bankless.com/-moon-math-the-bull-case-for-cryptography

Justin Drake: https://www.bankless.com/134-ethereum-unsensored-with-justin https://www.bankless.com/shanghai-capella-eth-staking-withdrawals-with-tim-beiko-justin-drake-and-anthony-sassano https://www.bankless.com/150-bull-case-for-ethereum-iv-with-justin-drake-dcinvestor-anthony-sassano https://www.bankless.com/devcon-2-justin-drake https://www.bankless.com/15-bad-eth-takes-with-justin-drake https://www.bankless.com/the-pow-vs-pos-debate-lyn-alden-and https://www.bankless.com/-layer-zero-justin-drake

---- Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From time-to-time I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here: https://www.bankless.com/disclosures